The effect of energy poverty on economic growth in ECOWAS countries: An empirical investigation

Although energy consumption is recognized as a crucial factor in the economic growth and development processes of nations, access to modern energy services remains inadequate in many low-income or developing countries. This situation, referred to as energy poverty, may manifest as limited access to electricity, the inability to obtain clean fuels and technologies for cooking, or the lack of sufficient income to afford the energy required to meet basic needs. In addition to countries that lack full access to energy, it is known that even where energy infrastructure exists, individuals in low-income groups are often unable to adequately benefit from energy resources or may not benefit at all. Furthermore, some communities living in rural or sparsely populated areas not only lack full access to energy but also face higher costs for utilizing the available energy. In particular, low-income households struggle to afford energy expenses and frequently face difficulties in accessing electricity and other essential energy resources. In this context, increasing income inequality may deepen energy poverty and pose a significant barrier to economic growth and development. This study aims to empirically examine the relationship between energy poverty and economic growth for 13 member countries of the Economic Community of West African States (ECOWAS) during the period from 2000 to 2020. Based on panel data analysis, the study employs the random effects model, considering access to electricity and access to clean fuels and technologies for cooking as indicators of energy poverty, and evaluates their impact on economic growth. The findings indicate that access to electricity and clean cooking fuels and technologies positively and significantly affect economic growth in ECOWAS countries. Accordingly, policies aimed at alleviating energy poverty are of great importance for achieving economic growth in these countries. Enhancing access to energy and promoting the use of clean fuel types instead of traditional ones are essential for sustainable growth